When a person gets possession of his new house or flat after years of hard work, lifelong savings and paying home loan EMIs, that moment is very emotional and full of happiness. But often in this atmosphere of happiness and haste, home buyers commit some big mistakes, due to which they later have to suffer huge consequences in the form of mental and financial losses. Builders or developers often try to hide many incomplete features and legal formalities while giving possession. If you are also going to take possession of your new flat, then take special care of these important things and checklist before taking the keys in your hand and signing the possession letter.
1. Verification of Occupation Certificate (OC) and Possession Letter
Taking possession of a flat without 'Occupation Certificate' (OC) and 'Possession Letter' is considered to be the biggest mistake both legally and financially.
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OC (Occupancy Certificate): It is a document issued by the local municipal corporation or authority that certifies that the building is completely constructed as per the safety standards, sewerage, electricity, water and approved plans. Living in any building without OC is considered illegal and in future the Municipal Corporation may disconnect water or electricity connection.
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CC (Completion Certificate): Ensure that the project has received the completion certificate.
2. Inspect for Snagging or Flat
Before signing the possession letter, check every nook and corner of your flat carefully. In real estate parlance, this is called preparing a 'snagging list'.
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Walls and paint finishing: Check for dampness, cracks or damaged paint in the walls.
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Plumbing and Leakage: Run all the taps, showers, flashes and pipelines in the kitchen and bathroom to see if there is any leakage or water stagnation in the drainage.
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Electrical Points: Turn on all the switch boards, plug points, tube lights and fan sockets in the house and check whether the wiring is correct or not.
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doors and windows: Whether aluminum or wooden doors and windows are opening and closing properly and whether their locks are working properly or not.
3. Car parking and common area facilities
Often, while giving possession, builders show only the work inside the flat and leave the common facilities incomplete.
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Allocated Parking: Check the physical location of your parking slot to ensure that the parking you have received (covered or open) is correct as per the agreement or not.
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Lift and Power Backup: Whether the trial run of the lift has been done in the society or not and whether the ARD (Automatic Rescue Device) facility for the lift is working or not. Along with this, check the generator (Power Backup).
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Club House and Amenities: Check the condition of gym, swimming pool, park and security arrangements. If these are incomplete, then mention this in writing in the possession letter.
4. Calculation of maintenance and additional fees
Do not blindly accept the final bill presented by the builder.
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Maintenance Fee: Check from what date the builder is charging the maintenance fees. Normally, maintenance should start as soon as you are given the Offer of Possession along with the Occupation Certificate.
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Advanced Maintenance: Often builders ask for 1 to 2 years of advance maintenance, ensure that a separate RWA or maintenance account is created for this.
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GST and Stamp Duty: Check that the taxes and extra charges (like meter connection charges, IFMS funds) demanded by the builder are as per the Builder-Buyers Agreement (BBA).
5. Re-measurement of carpet area
While taking over a flat, the biggest fraud is seen in the carpet area. As per RERA rules, the builder has to give you the same carpet area for which you have paid. Before possession, measure the area of the rooms with the help of an architect or yourself with an inch tape. If the carpet area turns out to be less than the approved plan, you are entitled to demand money back or compensation from the builder.
6. Do not sign paperwork in a hurry
Do not sign the 'No Dues Certificate' or 'Full and Final Possession Sheet' unless you are 100% satisfied with the construction and amenities of the flat. If there are any defects in the flat, write them down on the 'Punch List' or 'Snag List' and get it signed by the builder's representative and set a timeline to get them rectified.
7. Builder's Warranty (5-Year Defect Liability) under RERA
Under Section 14(3) of the RERA Act, if any major structural defect is found in the structure of the building or flat or any defect in the plumbing/wiring is found within 5 years of getting the possession, then the builder will have to repair it without charging any extra money. Must be repaired for free within 30 days. Always remember this right of yours.